Key Performance Indicators
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Parmenter David. Key Performance Indicators
About the Author
Preface
Why This Book Should Interest You
Barriers to KPIs Working Properly
Changes in Winning KPI Methodology
Chief Measurement Officer's Toolkit
Acknowledgments
Part I. Setting the Scene
Chapter 1. The Great KPI Misunderstanding
Key Result Indicators
Result Indicators
Performance Indicators
Key Performance Indicators
Seven Characteristics of KPIs
Difference between KRIs and KPIs and RIs and PIs
Lead and Lag Confusion
Number of Measures Required – The 10/80/10 Rule
Importance of Timely Measurement
Chapter 2. The Myths of Performance Measurement
Myth #1: Most Measures Lead to Better Performance
Myth #2: All Measures Can Work Successfully in Any Organization, At Any Time
Myth #3: All Performance Measures Are KPIs
Myth #4: By Tying KPIs to Remuneration You Will Increase Performance
Myth #5: We Can Set Relevant Year-End Targets
Myth #6: Measuring Performance Is Relatively Simple and the Appropriate Measures Are Obvious
Myth #7: KPIs Are Financial and Nonfinancial Indicators
Myth #8: You Can Delegate a Performance Management Project to a Consulting Firm
Chapter 3. Unintended Consequence: The Dark Side of Measures
Example: City Train Service
Example: Accident and Emergency Department
Examples from Dean Spitzer's Book
Performance-Related Pay
Chapter 4. Revitalizing Performance
Five Foundation Stones
Chapter 5. Strategy and Its Relevance to Performance Measures
Articulate Your Organization's Mission, Vision, Values, and Lean Management Principles
Create a Strategy That Is Understood by Staff
Ensure That Your Strategy Is Balanced
Monitor Implementation of Your Strategy
Part II. Winning KPI Methodology
Chapter 6. Background to the Winning KPI Methodology and Its Migration
The Original 12-Step Process
The New Six-Stage Process
Winning KPI Methodology and Its Migration
An Overview of the Six Stages
Chapter 7. Foundation Stones for Implementing Key Performance Indicators
“Partnership with the Staff, Unions, and Third Parties” Foundation Stone
“Transfer of Power to the Front Line” Foundation Stone
“Measure and Report Only What Matters” Foundation Stone
“Source KPIs from the Critical Success Factors” Foundation Stone
“Abandon Processes That Do Not Deliver” Foundation Stone
“Appointment of a Home-Grown Chief Measurement Officer” Foundation Stone
Chapter 8. Getting the CEO and Senior Management Committed to the Change (Stage 1)
Obtaining Senior Management Team Commitment
Agree on Timing, Resources, and Approach
Benefits of This Stage
Chapter 9. Up-Skill In-House Resources to Manage the KPI Project (Stage 2)
Establish a Winning KPI Team Working Full Time on the Project
Establish a Just-Do-It Culture and Process
Benefits of This Stage
Chapter 10. Leading and Selling the Change (Stage 3)
Leading Change by John Kotter
Learn to Sell by Appreciating the Emotional Drivers of the Buyer
Sales Pitches You Will Need to Make to Get the Go-Ahead
Selling the Winning KPIs to the Organization's Staff
Benefits of This Stage
Chapter 11. Finding Your Organization's Operational Critical Success Factors (Stage 4)
Operational Critical Success Factors versus External Outcomes
Operational Critical Success Factors – The Missing Link
Rules For Ascertaining the Operational Critical Success Factors
Characteristics of Critical Success Factors
Four Tasks for Identifying Operational Critical Success Factors
Alternative Methodologies
Benefits of This Stage
Chapter 12. Determining Measures That Will Work in Your Organization (Stage 5)
How to Derive Measures: An Overview
Ascertain the Team Performance Measures
Recording Performance Measures in a Database
Sorting the Wheat from the Chaff
Find the KRIs That Need to Be Reported to the Board
Find the Winning KPIs
Measures Gallery
Benefits of This Stage
Chapter 13. Get the Measures to Drive Performance (Stage 6)
Develop the Reporting Framework at All Levels
Facilitate the Use of Winning KPIs
Refine KPIs to Maintain Their Relevance
Benefits of This Stage
Chapter 14. Reporting Performance Measures
The Work of Stephen Few in Data Visualization
Reporting the KPIs to Management and Staff
Reporting Performance Measures to Management
Reporting Performance Measures to Staff
Reporting Performance Measures to the Board
Reporting Team Performance Measures
How the Reporting of Performance Measures Fits Together
Part III. Chief Measurement Officer's Toolkit
Chapter 15. Resources for the Chief Measurement Officer
The CMO Needs a Cluster of Mentors
Guidelines for the External KPI Facilitator
Remember the Fundamentals
Resources
Running Workshops
Implementation Lessons
Chapter 16. Case Studies on the Critical Success Factor Workshops
Private Sector Case Study #1: An Asian Conglomerate
Private Sector Case Study #2: Medical Company
Private Sector Case Study #3: Forestry Company
Private Sector Case Study #4: Car Manufacturer
Private Sector Case Study #5: Timber Merchant
Private Sector Case Study #6: Investment Bank
Nonprofit Membership Organization Case Study #2: Surf Life Saving
Government Department Case Study #1
Government Department Case Study #2
Professional Accounting Body Case Study
Charity Case Study
Chapter 17. Common Critical Success Factors and Their Likely Measures
Chapter 18. Comparison to Other Methodologies
Main Differences Between the Balanced-Scorecard and Winning-KPIs Methodologies
Stacey Barr's PuMP
Chapter 19. CEO Toolkit
Letter to You, the Chief Executive Officer
Appendix A. Foundation Stones of Performance-Related Pay Schemes
The Billion-Dollar Giveaway
The Foundation Stones
Appendix B. Draft Job Description for the Chief Measurement Officer
Outline
Duties/Responsibilities of the Chief Measurement Officer
Skills and Experience
Appendix C. Delivering Bulletproof Presentations
Appendix D. Presentation Templates
Appendix E. Performance Measures Database
Отрывок из книги
DAVID PARMENTER is an international presenter known for his thought-provoking and lively sessions, which have led to substantial change in many organizations. He is a leading expert in the development of winning KPIs, replacing the annual planning process with quarterly rolling planning, and lean finance team practices. His work on KPIs is recognized internationally as a breakthrough in understanding how to make performance measures work. He has delivered workshops to thousands of attendees in 30 countries around the world. Parmenter has worked for Ernst & Young, BP Oil Ltd, Arthur Andersen, and PricewaterhouseCoopers, and is a fellow of the Institute of Chartered Accountants in England and Wales. He is a regular writer for professional and business journals.
He is also the author of Winning CFOs: Implementing and Applying Better Practices, Key Performance Indicators for Government and Non Profit Agencies: Implementing Winning KPIs, and The Leading-Edge Manager's Guide to Success (all from Wiley).
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This recent clarification has fixed an issue I have noted in a number of in-house workshops I have run where there was a mix of operational CSFs and outcomes/impacts. This distinction is important, and while at first, an added complication, it is worth the effort to understand and execute. See Chapter 11 for more detail.
A Simplified Six-Stage Stage Methodology which Incorporates the Original Twelve Steps
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